House GSE Bill Referred to Second Committee
On Thursday, July 14, the House of Representatives referred the Federal Housing Finance Reform Act of 2005, H.R. 1461, to the House Judiciary Committee for a period ending no later than September 16. The Judiciary Committee will consider provisions in the bill, which aims to reform the regulation of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, that fall within their jurisdiction. H.R. 1461 was voted out of the House Financial Services Committee on May 24, and currently includes an amendment that would create an Affordable Housing Fund at both Fannie Mae and Freddie Mac with 5% of their after-tax profits.
HUD Appropriations
Markup is scheduled on the HUD Appropriations bill in both the Subcommittee and full Senate Appropriations Committee next week.
FYI: Senate Holds Hearing on Terrorism Risk Insurance Act
Treasury Secretary John Snow testified before both the Senate and House this week about the Treasury Department’s report to Congress entitled, “Assessment: The Terrorism Risk Insurance Act of 2002.” The Treasury’s TRIA report focuses on assessing the likely capacity of the property and casualty insurance industry to offer insurance for terrorism risk after the termination of the Terrorism Risk Insurance Program, which is scheduled to expire on December 31, 2005. Many legislators and insurers say the private insurance market is not ready to deal with the risk of terrorism without public subsidies and want Congress to extend the program. Secretary Snow testified that the Administration could support TRIA extension if the program were reformed in several key areas.
According to the American Society of Association Executives, Snow said any extension of TRIA should “recognize the temporary nature of the program, the rapid expansion of private market development…, and the need to significantly reduce taxpayer exposure.” Secretary Snow pushed for reforms to TRIA that would increase to $500 million the event size that triggers coverage, increase the deductibles and percentage co-payments, and eliminate certain smaller lines of insurance, such as commercial auto, that are less subject to risk.
